No stopping to Hyd property prices

Hyderabad: With the big names in the IT sector and a sea of young professionals, armed with large disposable incomes, having moved in Hyderabad, the city is facing a frenzied demand for quality residential complexes. The result being, a large residential supply crunch.

The apartment complexes that are ready to occupy are all sold out and new ones that are being planned need two more years before they are ready.

"The demand supply gap is still very big because the profile of the city has changed in the last 10 years and because of that MNC's are setting up shop here and the housing available is not upto the mark," Vice Chairman Hyderabad Urban development Authority, Jayesh Ranjan says.

There is also demand coming in from the citizens of Hyderabad who see this as an investment opportunity. That is the reason why prices of residential property in the city have skyrocketed by over 100 per cent in the last two years.

Experts say these prices will continue to grow by at least 20 per cent a year for the next five years because of the insatiable demand.

"In the long run there will be year on year growth of 10-20 per cent for four to five years. The markets in the north and in places like Bangalore have shown some slowness but the market in Hyderabad will not slow down for some time now," COO, Trammell Crow Meghraj, Santosh Kumar says.

In the mean time, everyone waiting to buy or occupy a home in Hyderabad has been forced to rent one. Causing a huge amount of stress on the home rentals in the city.

Houses that could have been leased at Rs 5,000 or Rs 6000 a month six months ago cost no less than Rs 12,000 today and even for those who don't mind spending there aren't any homes vacant to occupy.

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